Market supply is P = 10+0.5Q and market demand is P = 150−3Q in a perfectly competitive market. If a firm has fixed costs of 60, Variable Costs V C = 6q2 and Marginal Cost MC = 15q, which of the following will be true in the short run:
A. The firm will be producing and making positive profits.
B. The firm will be producing, but making a loss.
C. The firm will shut down.
D. Not enough information to tell.
